Both stores are growing at a double-digit pace and setting new weekly highs regularly. One location is an in-line, one is a stand-alone with drive-thru. Great leases w/ a 4.7% rent factor. The stores are in decent shape, well-staffed, well-managed, and profitable. I'm happy to share leases, P&Ls, etc. We're projecting 12-month sales of $1.6M with store level profitability of 25%.
Is it smarter to build new or to acquire an existing store? Consider this...It takes about a year to find a new site, negotiate a lease, do the build-out, and hire/train the staff. Then you have 3-6 months of negative cashflow related to the grand opening. All told, an in-line will cost you about $500K, a stand-alone drive-thru significantly more. And realize, there's always a risk that you chose a bad site. My two SKs have a proven track record with predictable sales and profitability.
The stores are turnkey, well-maintained, well-managed, well-staffed. Although Columbus GA is a DMA not an MDA, there are no other SK’s within 20 miles, and there won’t be in the foreseeable future. So, while the Atlanta market has over 70 SK stores and is “over-saturated” by some accounts, my two Columbus SKs are somewhat protected.
Over the past 20 years I've worked hard to build a nice portfolio of 80 or so franchise locations in various brands. I think Smoothie King is a great brand with promising future. The only reason I'm selling is because there's more to life than money (as my wife keeps reminding me).
To whomever buys these 2 stores, if you're planning to finance the acquisition, banks typically ask for 25% down. To help with the down payment, yes, I would be willing to finance (hold the paper) $100K.
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